Medicare Advantage Vs. Medigap: Key Differences
Anyone thinking about signing up for a Medicare plan has many decisions to make. However, one decision holds utmost importance: should you choose Medigap or Medicare Advantage to supplement the original Medicare plan? Here's all you need to know before making an informed decision.
It's challenging to budget for healthcare costs after retirement, as there's no way of predetermining whether the expenses would be huge or minimal. Part A or B of the Medicare plan does provide substantial basic coverage, but it ultimately covers only about 80% of the total cost. This means the remaining 20% has to be paid out of your pockets. However, there are certain ways that recipients can fill coverage gaps or mitigate the risk of massive bills during a bad health year, such as using a Medicare with Medigap supplemental insurance policy or investing in a Medicare Advantage plan.
Medicare With Medigap Supplemental Insurance
These are not endorsed by or connected with the federal Medicare program or the US government. Medigap and Medicare insurance plans offer coverage for every doctor and hospital in the USA that typically accepts Medicare without needing a prior referral or authorization from your primary care doctor. Even if you travel frequently within the USA or have particular hospitals or physicians you like to visit, the coverage will include it.
Medicare Advantage Plan
Available at most Medicare-approved, private life insurance services providers, Medicare Advantage plans (Part C) have a relatively lower or no premium compared to the hefty premiums for prescription drugs or Medigap policies.
These plans cover doctors, hospitals, prescription drugs, and certain urgent and emergency services covered by Medicare. It's more convenient to have a single plan that covers all, but you're restricted to specific hospitals and doctors within the network, and co-insurance and co-pays can add up from $3500 to $6500 on average.
However, most plans cover everything, including eyeglasses, dental care, and wellness programs, and deductibles are covered by Medicare Advantage plans. Another downside is that some policies require prior referral or authorization by primary care doctors or specialists, but the upside is that your eligibility isn't affected by financial or health status.
Need advice on choosing a suitable plan that offers maximum benefits? Schedule a consultation with experienced agents at Medicare Mentors. As one of the country's top life insurance companies, we will help you navigate the intricacies of different supplemental medical insurance or individual health insurance plans. From affordable hospitalization insurance to hospital indemnity insurance, prescription drug plans, hearing insurance, supplemental medical insurance, and more, we can assist you in selecting the best plan from the various varieties offered at our top life insurance service company.